Fighting for a balanced FINRA expungement process
Support a balanced FINRA expungement process
We at AdvisorLaw care about protecting the rights of all FINRA and SEC licensed professionals. It is our belief that a gross imbalance will transpire if some of the new expungement rules go into effect. FINRA, in an effort to protect the investor, has created a system that makes it very easy to have an allegation added to your CRD record. These allegations can be added through a simple phone call, email or complaint form submitted to your firm or FINRA. Many of these claims end up getting denied by the firm, closed by FINRA, or withdrawn by the client; yet they are permanent scars on an advisor's record.
There are thousands of false allegations in our industry that have gone to settlement. In these cases, settlements substantially less than the alleged damages are typically paid to the clients and their attorneys. The alternative, litigating to prove a claim is false or erroneous, is much more costly than these settlements.
Once a false allegation is made, it is permanent unless an expungement is granted by FINRA and recognized by a civil court. In this environment, FINRA is proposing to make the expungement process extremely difficult, costly, and even impossible if the claim is older than one year.
Please sign this petition as a sign that you support a balanced, cost and time effective, expungement process. If FINRA's proposed changes are implemented, it will be a monumental loss of power for the advisor and a big win for the attorneys that enjoy suing advisors. We at AdvisorLaw are here to fight for your rights!!! Please sign to support these rights.
Doc Kennedy MBA, J.D.
President & Managing Attorney